BSY: Expanding AI Adoption Will Drive Productivity Gains For Infrastructure Firms

Bentley Systems’ analyst price target has been reduced from $56 to $51 per share. Analysts cite a combination of solid quarterly results, a slightly higher discount rate, and tempered revenue growth expectations, which are offset by improving profit margins and future earnings multiples.

Analyst Commentary

Recent research notes offer a nuanced perspective on Bentley Systems, with both bullish and bearish analysts weighing in on the company’s valuation, growth prospects, and execution capabilities. Their commentary highlights several key factors influencing the stock’s outlook.

Bullish Takeaways

• Some analysts have upgraded Bentley Systems’ rating to Buy, reflecting confidence in its long-term growth trajectory and improving fundamentals.
• New product initiatives, particularly in agentic AI targeting civil engineering clients, are seen as potentially transformative and offer significant productivity gains for engineering and construction firms.
• Improvement in profit margins and solid quarterly results demonstrate strong execution and operational discipline.
• Price targets from bullish analysts remain above the current share price, indicating further upside potential if the company sustains its growth and innovation momentum.

Bearish Takeaways

• Cautious analysts have lowered their price targets, citing subdued revenue growth expectations and a limited appreciation potential in the share price compared to sector peers.
• Some retain a neutral stance due to the increased discount rate, which affects valuations, even with strong recent performance.
• While AI initiatives are promising, the immediate impact on financial performance remains uncertain and contributes to a more measured view on near-term upside.
• Analysts note that the company’s current valuation already reflects many positive factors, making it harder for the stock to outperform unless future results significantly exceed expectations.

What's in the News

• Bentley Systems and EARTHBRAIN Co. Ltd. announced a strategic partnership to integrate Bentley's AI-powered digital twin technology into EARTHBRAIN’s Smart Construction suite. This collaboration aims to enhance safety, productivity, and sustainability for construction sites in Japan and potentially worldwide (Client Announcement).
• The company introduced Bentley Infrastructure Cloud Connect, enabling infrastructure professionals to collaborate, manage files, and visualize geospatial data across projects and assets within a unified, secure environment. General availability is expected in December 2025 (Product-Related Announcement).
• Bentley unveiled reality modeling services in Cesium that support detailed 3D visualizations and immersive engagement applications for infrastructure teams. These services are integrated with its product portfolio, including MicroStation and Bentley Infrastructure Cloud. New features will be generally available before the end of 2025 (Product-Related Announcement).
• Bentley Systems was added to several major market indices, including the S&P 400, S&P 1000, S&P 400 Information Technology, S&P 400 Application Software, and S&P Composite 1500 (Index Constituent Adds).
• The company signed the White House’s Pledge to America’s Youth: Investing in AI Education, committing to provide AI tools and training for the next generation of American innovators (Client Announcement).

Valuation Changes

• The Fair Value Estimate has decreased slightly from $59.08 to $58.21 per share.
• The Discount Rate has risen marginally from 8.62% to 8.69%.
• The Revenue Growth Expectation has decreased from 9.75% to 9.32%.
• The Net Profit Margin has improved from 23.62% to 24.33%.
• The Future P/E Ratio has declined from 53.47x to 50.26x.